Glossary · Trading basics

Gap

An empty space on the chart where price jumped from one level to another without trading at the prices in between.

By Sky Trade editorial teamUpdated November 5, 2026

A gap appears when a candle opens noticeably away from the previous candle's close. On stock charts gaps are frequent, because exchanges close overnight. In forex, which trades continuously on weekdays, gaps mostly appear after the weekend (the weekend gap) or around sudden news.

Gaps matter for two reasons. They show that something changed while no one could trade at the in-between prices. And they break the assumptions of many tools: a level or order placed inside the gap was simply skipped.

Several classic candlestick patterns are defined with gaps — the piercing line, dark cloud cover and the morning star among them. On round-the-clock forex charts true gaps are rare, so traders usually accept a version without one; it is worth knowing that the textbook descriptions came from markets where gaps are normal.

“Gaps always fill” is a popular saying, not a law. Some do, some don't, and waiting for a fill can be expensive. See piercing line and dark cloud cover for how gaps feature in patterns.

Example

A USD/JPY candle closes at 150.80; after a surprise statement the next one opens at 151.35. The 55-pip gap means no trades happened between those prices.

Learn more in the academy

Piercing line and dark cloud cover: the 50% rule explained
How piercing line and dark cloud cover patterns work, why the second candle must pass the first one's midpoint, and what changes without gaps.

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